Cheers and jeers to feds’ plan to buy Trans Mountain pipeline

VANCOUVER (NEWS 1130) – Reaction to news the federal government plans to buy the Trans Mountain pipeline has been swift, with mixed feelings from both the BC Chamber of Commerce and the Greater Vancouver Board of Trade.

“It’s long-overdue good news that Canada will get its resources to tidewater and stop selling to a single customer – but the fact that our federal government had to step in proves there’s still deep uncertainty around investing in Canada,” says Val Litwin, BC Chamber of Commerce president and CEO in a statement.

“Our nation must take a hard look at itself: The regulatory regime in Canada is broken.”

He says the feds’ move proves that Canada’s regulatory system needs an overhaul. “Once a project is federally approved, it should not fall prey to stall tactics from opponents.”

Greater Vancouver Board of Trade CEO Iain Black says his group is both relieved and gravely concerned.

“On the one hand, we are very pleased that the federal government has stood firm and done what is necessary to ensure that this project gets built,” says CEO Iain Black.

“On the other hand, this is not a great day for Canada’s reputation on the international investment front. While we’re going to save the vital pipeline and have thousands of jobs that come with it, it really highlights how much damage has been done to our international reputation that government action was actually necessary.”

Black says many people don’t realize that business capital “flows according to the sentiments and emotions of people.” That means if people are worried that their investments aren’t going to be made in a safe environment, that could slow that flow.

“I think there is no doubt that we have got a job ahead of us as the business community — whether you are are in retail, tourism, hospitality, high-tech, green energy, agrifoods — we have got a job ahead of us to really rebuild the confidence in Canada that we’ve enjoyed for so many decades.”

Still not worth the risk: Vancouver’s mayor

Vancouver’s mayor, who has long been a voice of opposition to the Trans Mountain expansion, says today’s decision by the federal government does not change the city’s position.

Gregor Robertson says a seven-fold increase in oil tanker traffic is not worth the risk to the environment or economy.

“In Vancouver and our surrounding communities and shoreline, there are tens of thousands of jobs and millions of dollars of economic activity put at risk by an oil spill.”

He points out the city is still trying to recover clean-up costs after a relatively minor 2015 spill in English Bay.

‘Worst example of government finance,’ says local MP

One vocal critic of the project says Canadians should be shocked that Ottawa is making this move.

“To not only bail out Kinder Morgan, but to assume this asset — this leaky, 60-year-old pipeline — was really a very rickety plan to try to force this new project through British Columbia against our will,” says Kennedy Stewart, the NDP MP for Burnaby South.

He calls it the “worst example of government finance.”

“The private sector can’t make this thing happen, the government assumes it and takes all the risk, and then sells it back to the private sector. I can see massive losses here for the public purse and in the end, the pipeline still not getting constructed and Kinder Morgan walking away with a huge profit.”

Stewart accuses the Trudeau government of going back against its word on the project.

“Not only have they tried to push this through British Columbia, they’re now going to finance the whole thing with taxpayer money… I think Canadians are going to be very, very angry about this.”

‘Extremely expensive mistake’: CTF slams decision

The Canadian Taxpayers Federation is calling this decision a “colossal failure of the Trudeau government to enforce the law of the land.”

“This is an extremely expensive mistake made by the Trudeau government and it’s Canadian taxpayers that are going to have to pay the price,” federal director Aaron Wudrick tells NEWS 1130.

“We support the pipeline. We think the pipeline is good for the economy and should go ahead. But people who oppose the pipeline are going to be even angrier, now that their tax money is going to pay for it. And people who support the pipeline are going to say, ‘Why didn’t you just enforce the law so Kinder Morgan could build it themselves?’”

Wudrick says this sends a bad message to prospective investors.

“This signals that private companies cannot build big projects in Canada. That is exactly what they have signaled by doing this. It’s the opposite of giving confidence. It’s the signal to every investor around the world that you can’t build big things in Canada because the government of Canada is not willing to enforce the law.”

‘Dinosaur thinking’: Tanker Free BC disappointed

Saying this could become Justin Trudeau’s Clayoquot Sound, Ben West with Tanker Free BC is disappointed with today’s news. He calls it a step in the wrong direction for our coast, the climate, and reconciliation with First Nations.

“Now, we’ve added on to that billions of dollars of expense for the Canadian taxpayer — which frankly, I think is all going to be wasted because it’s quite likely that the permits for this project will be thrown out in court.”

West adds not much has changed in terms of what could stop the line. “At the end of the day, the things that I thought were going to stop the pipeline remain the same.”

“I think this is a form of dinosaur thinking,” he adds.

“It’s an old way of looking at the world. The government of Canada should not be facilitating climate change. It should be taking steps to move us beyond it. We’re basically investing in a sunset industry and doing so with some of the dirtiest oil in the world.”